2016 IPO market YTD

We wanted to take a moment to examine the performance of the IPO market so far this year and highlight some interesting trends with graphs and pictures. So far July looks like it will be a pretty good month so the positive momentum for the year is set to continue. Here are some of the key bullets from our analysis:

  1. It has been a light year so far in terms of volume (44 deals priced). Healthcare has dominated with 26 deals in total.
  2. Most returns (nearly ¾) are positive and the overall average performance is up 20%.
  3. Twill (TWLO) is the best technology name with a gain of 143%.
  4. SecureWorks (SCWX) is the worst technology name, but it still has a positive gain of 1%.
  5. Consumer, industrial and technology IPOs from 2016 are ALL currently above their IPO prices.
  6. All industries of IPOs from 2016 have a positive average current return.
  7. 2016 has the best average returns for IPOs so far since 2013.
  8. Thursday is the most popular day in terms of volume and also the best for returns . Thursday has produced 21 of the 44 IPO deals this year with average an current return of 32.56%.

And now onto the pictures:

First and just for fun we looked at the year so far by the day of the week. Thursday is the big winner. Naturally the middle of the week is the preferred timing for most banks since it gives them a couple of business days to build the final book and nobody likes to price on a Friday.

2016YTDThursdayPic

Healthcare is still dominating in terms of number of IPO transactions:

Screenshot 2016-07-14 14.39.42

Looking at overall performance by year the returns in 2016 have been very good compared to the past two years:

2016YTDPerfbyYearPic

Over the course of the year volume has grown and returns have improved too.

IPOYTDReturnsImprovingPic

The performance by industry shows that the few technology deals that got done did VERY well.

2016YTDIPOPerfbyIndustryPic

More to come:

July looks to be a good month for the market and we have several transactions expected to be completed in the next week or two. Thursday July 21st has at least 4 deals scheduled to price.
Two technology companies, Impinj and Talend SA are in the mix and we are digging into those for more in-depth coverage. Transcripts of their roadshow presentations will be available as soon as they are ready.
We can also create custom analysis and graphics if there are specific information about the IPO market that you’re looking for. These graphs will be updated and expanded into a full report we will publish a few times per year.

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